Calculate Angelicas realized gain or loss

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Question - Angelica's office building is destroyed in June 2019. The building had an adjusted basis of $475,000. Angelica, a calendar year taxpayer, receives insurance proceeds of $525,000 in January 2020 and elects §1033 for involuntary conversions. Calculate Angelica's 1. realized gain or loss, 2. recognized gain or loss, and 3. basis for the replacement property if she:

A. Acquires a new warehouse for $550,000 in January 2020.

B. Acquires a new warehouse for $500,000 in January 2020.

Reference no: EM133003259

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